International records / OpenAlex research

Government Deficit Financing and Capital Formation in Nigeria

This study empirically investigates the relationship between government deficit financing and capital formation in Nigeria over the period 1990–2024, using gross domestic savings as proxy for capital formation. Government deficit was proxied by external debt, Central Bank of Nigeria ways and means advances, deposit money bank loans to government, and treasury bills. The study employs descriptive statistics, the Augmented Dickey–Fuller unit root test, ARDL bounds cointegration testing, ARDL estimation, and post-estimation diagnostic checks. The unit root results reveal mixed orders of integrati…